Rare blue diamond fetches over $8.4M at auction

A Sotheby's employee displays a rare vivid blue diamond ring weighing 7.03 carats, during a preview at Sotheby's in Geneva, Switzerland, Wednesday, May 6, 2009. It is estimated to fetch US$5.8 to 8.5 million when it comes to auction in Geneva on May 12, at which point the buyer will have the honor

/ AP

A Sotheby's employee displays a rare vivid blue diamond ring weighing 7.03 carats, during a preview at Sotheby's in Geneva, Switzerland, Wednesday, May 6, 2009. It is estimated to fetch US$5.8 to 8.5 million when it comes to auction in Geneva on May 12, at which point the buyer will have the honor of naming the diamond as the first owner of the stone. (AP Photo/Keystone, Martial Trezzini)

A Sotheby's employee displays a rare vivid blue diamond ring weighing 7.03 carats, during a preview at Sotheby's in Geneva, Switzerland, Wednesday, May 6, 2009. It is estimated to fetch US$5.8 to 8.5 million when it comes to auction in Geneva on May 12, at which point the buyer will have the honor of naming the diamond as the first owner of the stone. (AP Photo/Keystone, Martial Trezzini) (/ AP)

The Associated Press

A rare 7.03-carat blue diamond sold for 9.3 million Swiss francs (more than $8.4 million) Tuesday, the highest price ever for a gem of its kind, according to auctioneers Sotheby's.

Including commission, the successful bidder will pay around 10.5 million francs ($9.5 million).

The gem, which is smaller than a dime, shaped like a cushion and one of only a few blue diamonds ever found, was among 346 lots auctioned Tuesday in Geneva. Only 266 lots sold, indicating that the economic crisis is keeping some buyers away.

On average, the rings, bracelets and necklaces on offer sold for almost 10 percent less than expected.

"I was a little bit concerned in this market," said David Bennett, head of jewelry for Sotheby's Europe and Middle East.

The anonymous telephone bidder has yet to name the diamond, Bennett said.

The gem was discovered last year in South Africa and has been graded highly for its vivid color and clarity, Sotheby's said.